^ f****^***********^*******^*************^********* 1> 

It $ I 

. . TO . . J I 

United States Congress: II 

COMPLIMENTS OF % f 

Two Hundred and Fifty Thousand Commer- * | 

; cial Men of the United States who are f I 
now ready to go forth into | | 

; every hamlet, and say: | t 

; “And we declare unto you glad tidings,how that the promise which was t h 

► made unto the ( people ) fathers, hath been fulfilled /” a ^ 

• But who do not wish to be compelled to go among their people and say : . 

► “But tidings out of the East and out of the North shall trouble (you) \ 

| him : therefore (they) he shall go forth with great fury to destroy , and \ 

* utterly to make away many 


Hon. CHAS. I. BRANAN’S 


(OF ATLANTA, (1A.) 


INTERSTATE 

Currency Plan, 

FOR THE 

CREATION OF A SAFE AND ELASTIC CURRENCY 

WHICH WILL INCREASE THE VOLUHE OF 
CURRENCY IN THE UNITED STATES, UPON 
A SAFE BASIS, AND CREATE A DEHAND 
FOR SILVER BY WHICH IT IS POSSIBLE TO 
DOUBLE ITS PRESENT BULLION VALUE. 


£ THE FOOTE & DAVIES CO., PRINTERS, ATLANTA, GA. 





































































































































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. . TO . . 

United States Congress: 

COMPLIMENTS OF 

Two Hundred and Fifty Thousand Commer= 
cial Men of the United States who are 
now ready to go forth into 
every hamlet, and say: 

“And we declare unto you glad tidings , how that the promise which was 
made unto the ( people) fathers , hath been fulfilled;'''' 

But who do not wish to be compelled to go among their people and say : 

“But tidings out of the East and out of the North shall trouble {you) 
him : therefore {they) he shall go forth with great fury to destroy , and 
titterly to 7nake away many.” 


Hon. CHAS. I. BRANAN’S 

(OF ATLANTA, QA.) 

INTERSTATE 

Currency Plan, 

FOR THE 

CREATION OF A SAFE AND ELASTIC CURRENCY 

WHICH WILL INCREASE THE VOLUITE OF 
CURRENCY IN THE UNITED STATES, UPON 
A SAFE BASIS, AND CREATE A DEHAND 
FOR SILVER BY WHICH IT IS POSSIBLE TO 
DOUBLE ITS PRESENT BULLION VALUE. 


THE FOOTE & DAVIES CO., PRINTERS, ATLANTA, GA. 




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“ A drop of action is more beneficial than an ocean of theory.** 


HON.CHAS. I. BRANAN’S PLAN, 


(OF ATLANTA, QA.) 


WHICH EMBODIES A PLAN TO INCREASE THE VOLUITE 
OF CURRENCY, AND RELIEVE THE NATIONAL OR 
STATE GOVERNAENT OF ANY DIRECT RESPONSIBIL¬ 
ITY FOR THE PAYAENT OF SUCH BANK NOTES. 



♦ I HIS National Interstate Banking Law to allow Banks 


-L of Issue has been carefully planned and outlined by the 
Hon. C. I. Branan, Representative from Fulton County, 
Georgia. He is a member of the House of Representatives 
of Georgia, and on the Finance Committee of that body. 
He states that this suggestion for an Act places all banks of 
issue in the hands of their respective States, also all money 
or bonds in the “Guarantee and Redemption Fund” in the 
vaults of their own State, and at the same time gives the 
National Government power to look into the standing and 
condition of all banks of issue—and further that any person 
or banker would know and feel safe with Georgia money in 
his hands, knowing the banking law in Georgia to be the 
same as in other States; and the facts in the last reports of 
the Secretary of the Treasury of the United States, placed the 
banks of that State in good condition. And this law provides 
that all banks shall have $275,000 to secure the issue of 
$7,5,000, or less of currency bank notes, and smaller or larger 
banks on the same basis. 

Mr. Branan says that this plan may not be perfect, but 
it is feasible and safe beyond a doubt. 

The plan suggested is as follows: 




4 


Branan’s Plan. 


Section 1. Be it enacted by the Senate and House of Rep¬ 
resentatives of the United States of America , in Congress 
assembled , That the provision of the act of taxing State 
banks is hereby repealed, provided that any State enacts 
an Act, which will embod}’ this interstate law governing 
State banks hereafter prescribed, which shall be satisfac¬ 
tory to the majority of the board commissioners of banksof 
issue, in which majority shall be included the President and 
the Secretary of the Treasury. 

Sec. 2. That all bank charters shall specify that the liabil- 
it}’ of stockholders is the same as provided in the Nation¬ 
al Bank Act, and further said State law will require 
that said stockholder shall have the consent of the Treasurer 
of said State before selling, (stating number of shares and 
amount,) and their liability shall not cease until thirty days 
have expired, after the consent of the Treasurer of said 
State. 

Sec 3. That when the president, cashier, board of direc¬ 
tors, accompanied by a list of stockholders, copy of charter 
and a sworn statement of the condition of said bank, make 
an application to the Treasurer of the State, in which said 
bank is located, and asks to become a bank of issue under 
this act and hereafter specified,—then it shall be the duty 
of the Treasurer to investigate the condition of said bank; 
and on the recommendation of the state officer, herein pro¬ 
vided, who is duly authorized to examine said bank, 
and the bank examiner named by the State banks of issue ? 
—provided that said bank’s subscribed capital is paid in, 
and is unimpaired, said Treasurer of said State in which said 
bank is located, shall be authorized to collect and hold such 
funds to protect the issue of the amount of currency; also 
that they may ask to be allowed to place into circulation 
according to this act hereafter specified, and when said law 
herein stated, shall have been complied with satisfactory to 
the Treasurer of the State, then said officers herein named, 


Branan’s Plan. 


5 


shall be authorized to sign certificates stated in application 
to the Secretary of the Treasury of the United States for 
the issuing of circulating bank notes. 

Sec. 4. That national banks can issue State bank notes 
under this act equal to seventy-five per centum of their unim¬ 
paired capital, less the amount of National bank notes, 
which they have in circulation by complying with the provi¬ 
sions of this act; and State banks shall not issue over seventy- 
five per cent, of their paid up unimpaired capital, under this 
act, and this shall be subject to a tax by the United States 
of one half of one per centum per annum, and the same 
amount of tax by the State, in which such banks are located, 
said tax to apply to such circulating bank notes as are 
taken out of possession of the State Treasury, for circula¬ 
tion provided for in this act. 

Sec. 5. That the tax of one half of one per centum per an¬ 
num b 3 r the United States upon the amount in posses¬ 
sion of each national or State bank shall be paid to the Secre¬ 
tary of the Treasury of the United States, and this tax collect¬ 
ed by the United States shall go towards defraying the expen¬ 
ses of the officers,printing of circulating notes, and other ex¬ 
penses in carrying out this act, and the residue shall go into 
the general funds of the United States, and paid out as here¬ 
after provided for, and one half of one per cent, per annum 
levied by the State herein stated shall go to defray the ex. 
penses of officers, etc., of said State, and the residue to go 
into the funds of the State in which said bank is located 
said tax to be collected through the proper channel of said 
State. 

Sec. 6 . That all printing or engraving of bank plates, shall 
be executed and printed on the distinctive paper used by the 
United States for their securities, and all bank note plates 
shh'll be held by the Secretary of Treasury of the United 
States. Application blanks for the printing and issuing of 
any amount of circulating notes shall be furnished by the 
United States; said applications shall contain blank spaces 
for the signature of the president, cashier, board of directors 


6 


Branan’s Plan. 


of bank making application, State bank inspector and the 
bank association’s inspector herein provided for in this 
act; also blank space for the Treasurer of the State from 
which the application is received, who shall certify to the 
correctness in said certificate worded by the Comptroller of 
the Currency of the United States. 

Sec. 7. That the bank issuing circulating notes shall de¬ 
posit and maintain a “Guarantee Fund” with the Treasurer 
of the State in which said bank is located, equivalent to five 
per cent, of the amount of circulating notes which said State 
Banks hold in their actual possession, or has gone out into 
circulation by their instruction. A non-transferable certifi¬ 
cate (without consent of State Treasurer) shall be given to 
the bank making said deposit bearing three per cent, interest? 
payable annually as long as said fund is equal to five per cent, 
of the total State bank note circulation—said deposit shall 
be invested in interest-bearing bonds of the United States or 
the State in which said bank is located. Said bonds shall 
be held to protect the State from any loss, by advances 
made to the “Redemption Fund.” 

Sec. 8. That every State Treasury shall create a “Re¬ 
demption Fund” by the lev 3 T ing of a tax of one per centum per 
annum on the amount under control of said bank the first year 
of the issuing of circulating notes by said bank, and continue 
until said banks shall have paid five per cent, on their circulat¬ 
ing funds or in their actual possession into said “Redemption 
Fund,” and until thereafter said banks cannot be required to 
pay any extra assessment into said “Redemption Fund” be¬ 
fore they shall have paid the five years tax. If said “Redemp¬ 
tion Fund” falls below five per cent, of the total amount of 
currency in actual possession or in circulation by the several 
banks who have paid the five years tax into said “Redempt on 
Fund,” then the Treasurer of the State shall cause the banks 
of issue to be assessed a sufficient amount to make said “Re¬ 
demption Fund” equal to five per cent, of the amount in actu¬ 
al possession or circulation by the several banks, who have 
paid the five years tax in to the “Redemption Fund,” provided 


Branan's Plan. 


7 


that said extra assesstment shall not be upon any bank that 
has not paid into this “Redemption Fund” five years tax, of 
one percent, for each year on the amount they have in circu¬ 
lation or in their possession. Banks of issue paying into the 
“Redemption Fund,” shall not be considered having any 
claims on said fund until they shall have paid into said fund 
the five payments of one per cent, on the amount of their 
circulation as herein provided, and all money paid into said 
funds shall be considered the “Redemption Fund” of these 
banks of issue who have paid the five payments herein pro¬ 
vided ; provided further, the Treasurer shall have power to 
invest said “Redemption Fund” in United States or State 
bunds bearing interest, [and to issue a ncn-transferable 
(without consent of the State Treasurer) certificate to the 
banks who have paid into the “Redemption Fund” for five 
years as herein provided, and further, the State Treasurer 
shall have power to pay a dividend not to exceed three per 
centum per annum upon the amount named in said certifii 
cate in the “Redemption Fund,” when said fund is above 
the amount required by this act. 

Sec. 9. —That each bank issuing currency under this 
act, shall deposit with the Treasurer of the State in which 
said bank is located, municipal, county, State, or United 
State bonds, equal to fifty per cent of their currency in cir¬ 
culation, said bonds shall be issued by such corporation as 
herein specified, not in excess of seven per centum of their 
taxable value, and which have not defaulted in payment of 
the interest in two years, previous to the time of their being 
offered as security, and further, bonds which are based upon 
gold or silver bullion deposited in the United States Treasury 
can be deposited in lieu of other bonds herein stated, but the 
face of said bond shall bear a certificate of the Secretary of tho 
Treasury of the United States showing the amount of gold 
or silver bullion upon which said bonds are issued. 

No bonds shall be in excess of the market value of the 
gold or silver bullion on deposit in the Treasury of the United 
States, at the time of its issue, and the majority of the 


8 


Branan’s Plan. 


board of commissioners of banks of issue, shall pass upon 
the market value of such bullion herein named. 

Sec. 10. That the notes of insolvent banks shall be re¬ 
deemed by the State Treasurer of the State in which the 
insolvent bank is located, out of the “Redemption Fund.” 
When said “Redemption Fund ” is not sufficient to meet such 
demands, then said State Treasurer can draw upon any 
State’s surplus fund in the State Treasury and hold the 
“Guarantee Fund” and other assets provided for in this 
act, as a security, to protect the State from loss. The 
Treasurer shall re-imburse the State Treasury out of the 
“ Redemption Fund ” when replenished, either from the as¬ 
sets of the bank which has failed, or, from the assessments 
aforesaid. 

Sec. 11. That no association or individual shall have 
any claim upon any part of the money in said “Guarantee 
Fund” except for the redemption of the circulating notes 
of any insolvent State or national bank issuing State bank 
notes under this act. Any surplus or residue of said “Guar¬ 
antee Fund” which may be hereafter ascertained or deter¬ 
mined by law, shall accrue to the benefit of said State hold¬ 
ing said “ Guarantee Fund,” except as herein provided. 

Sec. 12. That the State in which said bank is located shall 
have a prior lien upon the assets of each failed bank, and 
upon the liability^ of shareholders, for the purpose of restor¬ 
ing the amount withdrawn from the “Redemption Fund,” 
for the redemption of its circulation, not to exceed, how¬ 
ever, the amount of the failed bank’s outstanding circulation 
after deducting the sum to its credit in the “Redemption 
Fund,” already in the hands of the Treasurer of the State, 
or the proceeds from redeeming the certificate issued on said 
fund. 

Sec. 13. That all banks of issue shall be required to make 
four reports each year of the assets and liabilities of said bank 
to the Treasurer of the State in which said bank is located, 
and said statement shall be sworn to by the president o 


Branan’s Plan. 


9 


vice-president, cashier, and the chairman of the board of 
directors. 

Sec. 14. That in case of the conviction of any officer charged 
with making false statement to the Treasurer of any State, 
said officer shall be lined not over $5,000, and imprisoned 
not less than twelve months in jail. 

Sec. 15. That the majority of the banks of issue or banks 
where applications have been accepted by the Treasurer 
of said State, shall select a bank inspector, and the salary 
of said inspector shall be paid by the banks of issue, ac¬ 
cording to the amount each bank has in circulation. Said 
bank inspector shall give bond satisfactory to the 
Treasurer of said State, and said officer shall have the right 
to go into any bank of issue, demand a full statement, and 
investigate said bank in detail, the same as an officer when 
salary is paid the Treasury of said State. 

Sec. 16. That the Secretary of the Treasury of the United 
States, or an officer appointed by him, shall make at least two 
investigations of the office of the Treasurer of the several 
States in the United States each year that enact this act, as 
heretofore specified, and this officer shall have the power to 
demand the forthcoming of all statements made by the banks 
of issue of said State, or a statement of any bank of issue, 
which should have been in said office, as provided, 
Sec. 13, and the Treasurer of said State shall give a detailed 
report to the Treasurer of the United States that may be 
required as to said State carrying out this act to the letter. 
On the request of the Treasurer of any State, the Secretary 
of the Treasury of the United States shall detail an officer 
to investigate any bank specified by the Treasurer of said 
State. 

Sec. 17. That in the event of the winding up of the busi¬ 
ness qf a bank, by reason of insolvency or otherwise, the 
Treasurer or Comptroller of Currency of said State may, on 
the application of the directors of said bank, or of the liqui¬ 
dator, receiver, assignee or other proper official, and upon 
being satisfied that proper arrangements have been made for 


10 


Branan’s Plan. 


the payment of the circulating notes of the bank, and any 
tax due thereon, pay over to such directors, liquidator, re¬ 
ceiver, assignee or other proper official, all bonds and the 
amount to the credit of the bank in the ‘‘Redemption Fund,” 
indicated in Sec. 8. Said amount shall not exceed five per cent, 
of the amount said bank has in circulation, or of the amount 
desired to be withdrawn from circulation, and all interest due 
on certificates (provided for in Sec. 8), shall remain in the 
“Redemption Fund.” 

Sec. 18. That when application is made to the Secretary 
of the Treasury of the United States, according to this act, and 
satisfactory to the Secretary of the Treasury of the United 
States, then the Secretary of the Treasur}^ shall cause to be 
printed such blank currency notes, as specified in said appli¬ 
cation; provided, that no bank note shall be less than five 
dollars. 

Sec. 19. That the failure of any bank to make their quar¬ 
terly report, as presciibed by law, the president of said bank 
shall be fined by the Treasurer of that State not less than 
one hundred dollars for each day of the delay. 

Sec. 20. The Treasurer or Comptroller of the United 
States shall have power to place a fine of not less than one 
hundred dollars upon the Treasurer of any State for any 
failure on his part to compel the several banks under his 
charge to comply with any part of this act. 

Sec. 21. That the first appointment or appointments of 
bank examiner or bank examiners or inspectors, whose salary 
is to be paid by the bank of issue, shall be appointed by the 
Treasurer of said State, on the recommendation of the ma¬ 
jority of banks whose application is in the hands of the 
Treasurer. 

Sec. 22. That be it further enacted, That in case any Treas¬ 
urer or Comptroller of Currency, or their subordinates, of 
the United States, or the State in which said banks of issue 
are located, should make a false report of the condition of 
said bank or banks, they shall be fined not less than one 
thousand ($1,000) dollars, or imprisoned not less than one 


Branan’s Plan. 


11 


year in the State penitentiary of the State from which said 
crime originated. 

Sec. 23. That all applications for pardons of persons con¬ 
victed of failing to carry out this act, in good faith, shall 
only be granted or fine decreased by the President of the 
United States. Be it further enacted, All persons coun¬ 
terfeiting, or passing counterfeit currency issued under this 
act, shall be subject to the existing law of the United States, 
and .shall be tried in a United States court. 

Sec. 24. That the Treasurer of any State, on being 
notified of the fact that certain banks are going out 
of business, then he shall give notice to the Secretary of 
the Treasury of the United States, and he shall give 
notice to the Treasurers of the several States, and shall, in 
turn, notify each bank in said State to return all bank bills 
issued by said bank to the Treasurer of said State, for re¬ 
demption. ' 

Sec. 25. That be it further enacted, That after the lapse 
of two years from the date of any bank placing the proper 
amount in the hands of the Treasurer of any State, for the 
redemption of outstanding bank notes, if any funds remain, 
and not called for, then the Governor shall have the power 
to invest and reinvest said balance in State or United 
States bonds. The interest from said bonds shall be used 
for educational purposes in said State. 

Sec. 26. That the Treasurer of any State shall im¬ 
pose a fine upon any State officer not over five hun¬ 
dred dollars, for giving out any information as to the condi¬ 
tion of any bank, except to the inspectors or Treasurer of 
said State without written authority from the Treasurer of 
said State. 

Sec. 27. That any State shall have power to au¬ 
thorize the Treasurer of said State, to issue a certifi 
cate of deposit, due in one year or less, to any one demand 
ing the redemption of any State bank notes of any bank 
of issue of said State which has gone into the hands of a 
receiver or liquidation ; said certificate shall give a descrip- 


1*2 


Bran ax’s Plan. 


tion of the bank note for which it is given, and the State 
holding the original note and other assett as collateral. 

Sec. 28. That should any bank fail to pay the tax or as¬ 
sessments, or redeem outstanding currency, that may be re¬ 
quired or demanded by this act or future one, then a demand 
shall be made for the amount of currency issued by said bank 
or its equivalent; in five days or less from said demand, their 
failure to meet said demand, or make a satisfactory state¬ 
ment, said bank shall be placed in the hands of an inspector 
and the president, vice-president and cashier, shall be placed 
under a bond satisfactory to the State Treasurer for twelve 
months to protect all parties from loss by any defector neg¬ 
lect in the management of said bank and other terms of 
this act. 

Sec. 29. That no bank shall be allowed to withdraw its 
part of the “Redemption Fund” if it should appear to the 
Treasurer, that said bank was anticipating the failure of 
any other bank or banks of issue in said State. 

Sec. 30. That the Treasurer of the State shall have 
power to withhold the acceptance for sixty days of the 
application of any bank to withdraw as a bank of issue of 
said State. 

Sec. 31. That the Secretary of the Treasury of the 
United States shall have power to require each Treasurer 
of the several States in which banks of issue are located, to 
furnish in such form and number as may be specified, an an¬ 
nual statement ending December the 31st, also, three months 
after this act goes into effect, a statement of every bank of 
issue in said State. 

Sec. 32. That the Secretary of the Treasury of the United 
States shall have power to furnish to each bank in the 
United States, a copy of the statements made by the 
several State Treasurers in the United States, in a single or 
combined volume, and if any apparent defect is discovered 
in any statement by any bank of issue, or by any bank 
official, said defect shall be reported to the Treasurer of the 
State in which said officer resides, and said Treasurer shall 


Bran an’ s Plan. 


13 


have power to request of the Treasurer of the State in which 
said bank is located having the defect, information as to 
said defect, and said Treasurer receiving such request, shall 
investigate and give a satisfactory answer to the Treasurer 
making such request, or the same shall be reported to the 
Secretary of the Treasure’ of the United States, who shall 
take proper action at once. 

Sec. 33. That all banks issuing currency under this 
act shall have the option of icdeeming same in gold or 
silver if the demand should be made, in which a specified 
class of mone\ T is preferred. 

Sec. 34. That All banks issuing currency under this act, shall 
keep a semi-annual (quarterly if required) revised list of the 
stockholders, giving name and amount held by each, and it 
shall be subjected to inspection by any bank inspector, and 
if it should appear that the stock of said bank was inten¬ 
tionally being transferred to insolvent stockholders, it shall 
be the duty of the Treasury of said State to place said 
bank in the hands of a receiver, same to be appointed by 
him. 

Sec. 35. That if the amount of currency, or its 
equivalent which any bank has outstanding at any stage of 
proceedings is paid over to the Treasurer of any State, and 
satisfactory to him, then the said bank shall revert and can 
assume business in five days thereafter under the existing 
original banking law of said State. 

Sec. 36. That should any bank doing business under 
this act fail to report to the Treasurer of the State 
the fact that the paid up capital of said bank has be¬ 
come impaired for any reason in five days atter said fact ex¬ 
ist, then said bank president or vice-presiden*t shall be fined 
bv th^ Treasurer of said State not over five thousand dollars, 
at the discretion of the Treasurer of said State, if said bank 
places with the Treasurer of said State the amount of cur- 
rencv or its equivalent that said bank has outstanding, then 
said bank shall not be subject to the fine, but said bank 


14 


Branan*s Plan. 


shall thereafter do business under the original banking law 
of that State. 

Sec. 37. That the power of selecting State officers 
to carry this Jaw into effect, and naming their com¬ 
pensation for same is hereby vested in the Treasurer of each 
State and confirmed by the General Assembly of said State, 
but the amount of bond required of said officers shall be ap¬ 
proved by the Secretary of the Treasury of the United States. 

Sec. 38. That the passage of this act and approval 
by the President of the United States, the Secretary 
of the Treasury shall, with the advice of the Attorney-Gen¬ 
eral of the United States, frame an act which will conform 
with this act and furnish the Governor or Treasurer a suffi¬ 
cient number of said act for each member of the House of 
Representatives and each Senator of said State, with a 
proper blank certificate attached, showing and agreeing to 
favor the passage of said act, at the next session of the 
General Assembly. Further, when the Secretary of the 
Treasury receives the approval of three-fifths of the mem¬ 
bers of the House of Representatives and three-fifths of the 
Senators of said State favoring the passage of this act, 
properly attested by a superior court judge of said State 
and endorsed by the Treasurer of said State, then the Sec¬ 
retary of the Treasury of the United States shall 
proceed to issue such State bank notes which have 
been properly applied for and in accordance with 
with this act. This shall not apply to States where the next 
regular session of the General Assembly is to be composed 
of newly-elected members; but when that is the case, the 
Governor of said State shall have power to call an extra 
session of the General Assembly, to take in consideration 
the passage of the act presented to them by the Secretary 
of the Treasury of the United States, and then, or there¬ 
after, when proper proof is given to the Secretary of the 
Treasury of the United States that said act, prepared by 
him or his predecessor, is adopted and made part of the 
laws of said State, then the Secretary of the Treasury 


Branan's Plan. 


16 


of the United States shall recognize any State or national 
Bank which complies with the provisions of this act in 
said State. 

Sec. 39. Be it enacted, All banks of issue, doing busi¬ 
ness under this act, shall retain and have on hand a reserve 
equal to ten per centum of their non-interest-bearing de¬ 
posits, in United States legal tender notes, silver or gold. 

Sec. 40. Provided further, The Secretary of the Treasury 
may, in his discretion, use any surplus reserve of the United 
States, created under this, or any other act in the redemption 
and retirement of United States legal tender notes; but such 
redemption shall not, in the aggregate, exceed an amount 
equal to the circulating State bank notes, taken out by 
national or State banks under the system herein provided. 

Sec. 41. Be it further enacted, All money collected by 
fines by the State Treasurer and otherwise shall go in the 
State Treasury’s general fund. 

Sec. 42. Be it enacted, The Treasurer of the United States, 
with the consent of the President, and a majority of the 
Board of Commissioners of Banks of Issue, shall have power 
in times of emergency to lessen the restrictions placed upon 
banks of issue by this act, directly or indirectly, but a de¬ 
posit shall be made with the Treasurer of the several States 
which have enacted the body of this act of sufficient security 
to protect the depositors and holders of the currency of said 
bank or banks of issue. Said security shall consist of United 
States (or State bonds satisfactory to the Secretary of the 
Treasury of the United States) gold or silver bullion bonds, 
but said security shall not be accepted only at ninety per 
cent, of their market value. 

Sec. 43.—That all banks issuing currency under this 
act) shall designate a bank in said State, with the consent of 
the Treasurer of said State, where their notes shall be re¬ 
deemed on demand. 

But there shall be engraved on the right hand end of each 
note, circulating as currency, under this act, a conspicuous 


16 


Branan’s Plan. 


national design not in similitude to any other design upon 
any currency now in circulation. 

Sec. 44.—That the deposit of fifty per centum of the 
amount in circulation, by each bank of issue, shall not 
be drawn on except to pay the outstanding notes of the 
banks who placed said bonds with the State Treasury, but 
the State Treasurer shall have power to give to said bank 
a certificate describing said bonds and amounts; but said 
certificate shall have written on the face, ‘‘All claims upon 
this bank herein named, shall be satisfied (except the stock¬ 
holder) before this certificate will be recognized or be of any 
value in the hands of any person.” 

Sec. 45. That circulation can be retired by a bank at any 
time, upon the depositing with the Treasurer of the State in 
which thebank is located, silver orgold or legal tender notes,in 
amount equal to the sum desired to be withdrawn; and im¬ 
mediately upon such deposit, all assets held due said bank 
in the “Redemption Fund” (provided for in Sec. 8), or 
amount due on the certificates of deposit, shall be returned, 
and the tax provided for in Sec. 5 shall immediately cease. 

Sec. 46. —That the President, Vice-President, Speaker 
of the House of Representatives and the cabinet officers 
shall constitute a board of commissioners of banks of 
issue under this act. 

A majority of said Board of Commissioners including 
the President and the Secretary of Treasury of the United 
States are hereby empowered to originate such minor mat¬ 
ter that will make this act effectual in carrying out the orig¬ 
inal intention—but said amendment shall be recommended 
by the Secretary of the Treasury or the Comptroller of the 
currency to the next session of the congress, and they can 
accept, amend or decline said amedments. But the instruc¬ 
tions of said Board of Commissioners shall go into force at 
once, and continue until the action of Congress or Supreme 
Court declare against said matter originated by said Board 
of Commisioners of banks of issue, and the President is 
hereby authorized to draw warrants on the Treasury to de¬ 
fray the expenses in carrying out this act. 


Branan’s Plan 


17 


MR. BRANAN’S LETTER, 


IN WHICH HE GIVES SOME PRACTICAL REASONS FOR 
THE ADOPTION OF THIS COMPROMISE PLAN OR A 
SIMILAR ONE. 



,EING a commercial traveler and coming in con¬ 
tact with bankers, merchants and the consumers, 


I find in advocating my own business or any public ques¬ 
tions, T am more successful when I speak in a plain, busi¬ 
ness-like way. Therefore, in discussing this question (which 
I have studied mostly by exchanging ideas with the com¬ 
mercial men all over the United States), I will try and deal 
in every-day expressions. 

In presenting this bill to Congress and the people for their 
consideration, as a basis by which banks of issue can go 
forward and place their circulating notes among the people, 
with what I deem adequate protection from loss, almost 
beyond a doubt, at least as much so as any paper money 
now or that has ever been in circulation. It is not my 
desibe to ask any party or faction to look upon it 
with careful consideration, or with favor, but I pre¬ 
sent it to the true and honest Americans of that body who 
have left home and their firesides and their private business, 
that they might stand in the legislative halls of this Union 




18 f/// Branan’s Plan. 

and do something to benefit their people, among whom are 
Republicans, Democrats and Populists, for if this Congress 
fails to pass a bill to give them financial relief, every name 
which appears upon the roll will go down in the nation’s 
history with a dark mark under the same. 

This plan may appear very strict upon all officers who are 
connected, either directly or indirectly, with these banks of 
issue, and this is right, and why ? 

First.—There is nothing in this plan which is impossible/J 

Second.—It is important to protect the people, and give 
them good money, 

Third.—It is supposed that these officers are men of exec¬ 
utive ability, and should carry this important matter out in 
a strict business-like manner. 

Fourth.—A man who knowingly does wrong, and thereby 
making that important factor, finance, defective, should be 
almost annihilated. 

You will take in at a glance that this plan places the banks 
of issue under the direct control of the Treasury of each 
State, and indirectly under the supervision of the Secretary 
of the Treasury of the United States of America. 

You ask why I do this ? 

First.—While it is true that ninet 3 "-five per cent, of the 
people feel loyal and proud of this Union, still there is a feel¬ 
ing of pride of “Home Rule;” therefore e\ery banker would 
like to feel that he was dealing with his immediate friends 
(the people of his own household) by coming in contact with 
home officers, and having their money, which constitutes 
the guarantee and redemption fund in the hands of their 
own treasury. 

Second.—There will, naturally, arise a competition between 
the Treasury of the several States as to the high standing of 
the banks of issue of their lespective States, and the result 
as to the failure of banks of issue would be seldom heard of, 
at least a failure in which any loss to the depositor would 
occur or cause a draft on the “Redemption Fund. 0 


Branan’s Plan. 


19 


Third.—The failure of a bank of issue under this State 
supervision, and if the officers should not make a satisfac¬ 
tory showing as to good management they would bemore se¬ 
verely criticised for any demands on the “Redemption Fund” 
of their own, than they would to draw on the “Redemption 
Fund” held by the United States. Juries would deal 
with them without mercy, for there is a feeling among 
many good men, that the United States is “Big 1” and can 
afford to be robbed, but when they break “State Laws,” 
“woe unto the sinner.” 

Fourth.—If any State desires not to take advantage of 
this plan at present, they can delay, see how it works, and 
take it up in the future. 

Fifth.—There will spring up among the banks of the Un¬ 
ion a feeling of reciprocity, by which any bank will accept 
the bank bills of other States as quickly as they would 
their own, for there would be times when the banks of the 
South could use the idle money in the West at a reasonable 
interest, vice versa as to both the North and East. 

You will notice that I have required a deposit of fifty per 
cent, in bonds of their State bank circulation, in addition to 
the national and State tax. This may] appear somewhat 
large in comparison with other plans, but let us make it enough 
to start on and it will be easier to lessen than to increase it, 
the congressman can say when he goes home that he 
has done the banks a benefit and at the same time, say to 
his people, “they pay for it,” and not be criticised. 

This plan provides that national banks shall continue and 
receive the benefit of this plan, also that this plan will con¬ 
tinue the issue of national bank notes, which will keep up 
the market and the demand for United States bonds. 

This plan provides in anindirect way the use of silver for less 
than five dollars usages, also the fact that they can redeem 
these plan with gold or silver, as provided, the national or 
State banks will carry their surplus in silver, and the natural 
outcome will be tc increase the demand for silver. 


20 


Branan*s Plan. 


This special banking law being a national interstate bank¬ 
ing law for the issuing of State bank currency, it is readily 
seen how the banks of California should have perfect con¬ 
fidence in the bank bills issued by New York or Georgia, for 
they would know the system under , which that bill was 
issued, and also they would have a sworn and approved state¬ 
ment of that bank’s assets and liabilities in their possession, 
and confidence between them would grow as the system 
would become more familiar. 

If you will read carefully the protection which is thrown 
around these banks of issue, you will readily agree with me 
and say you would rather use one of these banks to make your 
deposits with, than banks under the general State banking 
law, for not only the State officers are watching, but the 
officer of the State Bank Association is keeping a watchful 
eye open for any flaws, for he has instructions from the 
strongest banks in the association: “The moment any bank’s 
capital becomes impaired, report it to the State Comptroller 
of Currency, or you will not onl 3 T lose your position, but we 
will make your bondsmen pay all damages by your neglect, 
both as to drawing on our redemption funds, and also any 
loss to depositors in said bank, from your neglect.” 

The national banks have been favored in the past, are now 
being favored to some extent, and, to say the silver section 
has been favored, is putting it mildly, for we have made 
“silver kings,” and they are to-day bondholders, which are 
non-taxable, purchased from the sale of a commodity at a 
loss to the United States. 

Men of America! is it not now time to make a few “State 
bank kings, by which you would do all sections and every 
State in the Union good, and receive the praise of thousands 
of your people who are crying for bread and a return of 
“good times,” to benefit such corporations, who are generally 
the bankers of the cities and the towns throughout the land, is 
to place money into the hands of men, who will go forward 
and build up home enterprises, and push forward those mat. 
ters which will benefit and give the working class means by 


Branan’s Plan. 


21 


which they can earn their living by the “sweat of their 
brow.” 

Every congressman and senatorcan say, “I have donemy 
duty toward my State by passing a bill which will enable 
them to employ their own inspectors, and issue currency 
upon a basis which they call safe, and if the State don't 
think it is safe, they can hold on to the national bank cur¬ 
rency ; and, at the same time, let many States test it, and if 
it does not work, they or their successors can secure rein¬ 
forcement, to drop back in the original, or a better system.” 

The fact that each car (State) has a conductor under 
strict rules (State Treasurer), and that the engineer, who 
has charge of these cars (Secretary of the Treasury of the 
United States) with his hand upon the throttle and his 
eye upon the rail, and for his “boss,” the United 
States backed by Congress and the President, should be 
a strong point in favor of this plan. 

It seems to me, that those who appreciate the benefit 
derived from having the credit of the United States being 
held up at a high standing—from a political, financial and 
social standpoint—should look upon any plan with favor 
which would place moneyed men or the banks in sympathy, 
and willing to act in concert with the Secretary of the 
Treasury of the United States, in securing gold at a moment’s 
notice—to keep $100,000,000 in treasury, and without the 
expense of being compelled to issue bonds. 

You can at once see how important it is for every bank to 
throw its gold in the hands of the Secretary of theTreasury, 
and take gold certificates f or same, if he should ask f or it—hold 
it in preference to any other currency, as a reserve to protect 
the depositor or in any way to protect the gold reserve, in the 
United States States Treasury, for it would be to the benefit of 
every State and national bank issuing currency under this 
act, to keep gold down at par, in fact, make it a burden, 
or rather encourage the use of paper money in preference. 
For they would know very well the moment gold demanded 


22 


Branan’s Plan. 


a premium—the State bank currency would be at a discount 
indirectly. 

The Secretary of the Treasury under this act, will gradually 
retire these legal tender notes and the possibility of a de¬ 
mand upon the treasury for gold would grow less every 
year; not only a large part of the $100,000,000 that should 
be in the treasury can be placed into actual circulation ; and 
those persons or banks who are inclined to harbor gold in 
their private or public vaults in any way, will let it go into 
circulation very readily. 

I believe this plan will enable the United States to float United 
States bonds, bearing interest from two to three percent., very 
easily in the near future, and in smaller denominations, by 
which the wage-earner can be encouraged to save his earnings 
and invest in these bonds, which he can use on a moment’s 
notice and at the lowest interest, and the more persons holding 
securities of the United States, a closer bond of union will 
be the result, besides these bonds being in the hands of 
the masses, banks of all sections would receive a general 
benefit by having them presented, as a security for short or 
long time loans. 

Every one will agree that the United States, under the 
constitution, has a right to issue a currency of gold and 
silver, but they differ when as to the constitutionality of the 
right to issue or allow to be issued under their guarantee 
and protection any other money. Now, it seems to me 
that congress should have the right to enact such laws as 
would be a safeguard to protect their gold and silver as to 
its parity, even if they saw properto place a tax upon State 
banks or any other such institutions, and the State banks 
would have the right to proceed in circulating their currency 
and the governmnt would thereby keep up the value of their 
gold and silver dollar which has a certain amount of the 
commodity therein, otherwise, without this right to protect, 
there would be a possibility of the value of the gold and silver 
dollar being affected. 

Having this argument before me, I have prepared thi 


Branan’s Plan. 


23 


plan in the form of a rough bill, which you have before you 
hoping that this would have a tendency to influence those 
who hold to the idea that the tax on State banks is con¬ 
stitutional, to agree with me, when they discover that 
the government taxes and controls every bank of issue 
under this plan, and on any day, can regulate and per¬ 
fect this national interstate bank act, on which I make 
this limited argument. 

At the time of the passage of this tax of ten per cent on 
State banks, it was seriously questioned as to its consti¬ 
tutionality, also the right of the government to charter and 
foster national banks, but the government took advantage 
of the doubt and give the people the remedy, which at that 
time was beneficial. And again, when the present congress 
took the bold stand and enacted the “income tax act,” in 
the face of an argument as to its being unconstitutional, 
they took the advantage of the doubt, that they 
might benefit ninety-five per cent of their people and affect 
about five per cent., who are able to pay the tax, for they 
have the income. And any person, or more particularly 
any party, who attempt to do away with this income tax 
law, the result will be a national death to that party, except 
at some future date when the masses condemn it, and de¬ 
mand the repeal, particularly, when the constitutionality of 
it, is unquestioned by hundreds of the best legal opinions of 
the union, and in connection with that, the government 
needs that “income tax” money now, especially when these 
moneyed sharks (many of whom will pay this income tax) 
are trying to bankrupt “our government” by securing “our 
bonds” through a trust, and making millions thereby. 

In bringing out the action of congress in reference 
to the ten per cent tax on State banks, fostering national 
banks and passing the “income tax act,” in the face of 
an argument as to their being unconstitutional, but 
made them a law, for the reason I have stated heretofore, 
they took advantage of the doubt that they might benefit 
their people; then we should do likewise on this currency 


24 ' 


Branan’s Plan. 


question, come together as men, and not as a party, and 
take advantage of the doubt as to the constitutionality of 
this plan I have suggested, or some similar one, that we 
might benefit “our people,” and let England take care of 
herself, for when Geo. Washington was our leader, many 
years ago, when England attempted to control us, then we 
looked out for ourselves, and to say we are to-day “free 
citizens” is sufficient. 

There is possibly a time coming when the Republicans, 
Democrats and Populists, will fall into line as one man, and 
ask no questions as to the politics of the chief commander, 
but at his command, move forward to face shell and canister 
with real powder behind them, and it may be some of us will 
return with our dead, and to have all the honors that can be 
heaped upon us as officers and privates who battled in real 
war; but that’s speaking of the future, let us talk of the 
present. We have a war on us now, and every true citizen, 
let him be a leader or an humble one, should fall into line and 
make a charge on that class of moneyed monopoly, who de¬ 
sire to conquer and control our country, “sweet land of lib¬ 
erty.” Let them unite themselves on a street, with either a 
“Rock Wall” or “Gold Wall” as a protection, but victory 
will be ours, and we will return without a scar, and go into 
history as men who had the nerve to give to the people a 
currency which was safe, elastic and not controlled by com¬ 
binations. 

From the moment this bill is approved by the President, 
you will see silver advance to a point which will surprise the 
silver men themselves. 

I am a friend to free silver and to the free coinage of same 
(at the proper time), and the result of this act going into 
operation will be a strong factor in bringing that about on 
a safe basis, and the day will come when that MAN and his 
followers who took the lead in repealing the Sherman act, 
will be looked upon by silver men as the leaders among the 
friends of silver; for it is the friend who stops the man from 
a mad rush to ruin ; it is the friend who harbors the man and 


Branan’s Plan. 


25 


gives him shelter for the night, that he might be better pre¬ 
pared to start on his journey the next day and be successful 
for the destiny for which he was originally intended. The 
very men who are nowurgingthe free coinage of silver would 
do well to look into the possible benefit which would be de¬ 
rived from the passage of this act, or some similar one, for 
to-day silver is not used in certain sections of the United 
States nor in many States, and the natural outcome of this 
act will place silver in every State, and bank of issue, as a 
circulating currency, for the bank of issue can afford to give 
silver out in lieu of State banks notes, and no bad results 
would be the outcome; but the Secretary of the Treasury 
could not afford to offer silver when gold was demanded in 
lieu of legal tender notes, for this grand republic of ours 
should not take any chances or experiments when the possi¬ 
bilities would make its financial system defective, but the 
banks of issue which have an individuality, and no doubt 
that they would work in concert as to placing silver back 
into the confidence of the people, and the time would soon 
come when the Secretary of the Treasury could pay out silver 
and not affect its credit, and at the proper time our mines 
and mints could be opened and give the people a silver dollar 
whose bullion value is almost the value of a gold dollar if 
not its equal. I am in favor of gold and know its value as 
a safe currency, but I am not in favor of the moneyed mo¬ 
nopolists using it to injure the credit of the United States* 
and l think every true representative of his people will not 
hesitate to enact a law which will lessen this murderous as¬ 
sault which they are making upon “our country;” 

I know every business man in congress, (that should mean 
every member of congress) will unite with me, and say this 
is a business matter of vital importance to the Republicans, 
Democrats and Populists, and should be acted on promptly, 
when the result will cause all classes of business to resume 
its former activity, and thereby give employment to thou¬ 
sands of the unemyloyed, and while there will be an advance 
in the price of wages and commodities, the result will be of 


26 


Branan’s Plan. 


general benefit to every one. This plan upon which currency 
can be issued by State banks will benefit every honest fac¬ 
tion in congress now, and it will not injure any of their in¬ 
terests, but to the contrary will benefit, for “our govern¬ 
ment” will unload a burden upon the national and State 
banks of the United States which has been and is now threat¬ 
ening her downfall, which would be to the injury of every 
moneyed interest and the masses as a whole. I have gathered 
many valuable suggestions from the plans which have been 
placed before congress and the people; also the criticism 
which the congressmen have made upon them from time to 
time. I will not go into detail as to the amount of silver, 
gold, legal tender notes, .silver and gold certificates and na¬ 
tional bank notes now in circulation, and also at the same 
time bring in the finances of every country in the world, to 
your attention, but you have had enough of that class of 
matter already. What the people want is a remedy and it 
applied at once. The small number of officers required in this 
plan in addition to those already employed, after the first 
year of its existence is a factor in its favor. 

Personally, I am satisfied that each State could enact such 
laws as would insure a safe currency, but I see in this plan a 
benefit to such currency, that would almost make it a na¬ 
tional, and at the same time have an indirect tendency to 
bring the States closer together. 

Many of these “cheap John” politicians, who read that 
part of this plan,which directs the Secretary of theJTreasurer 
of the United States to investigate the statements in the 
hands of the Treasurer of each State, will throw up their 
hands, and say: this is intruding on the sovereign rights of 
the States, and this same class of politicians, in case of 
an uprising of the people, with shot-guns in hand would 
be the first to run into a “bomb-proof” and hand out 
to some of their “ward heelers” a telegram to “Grover 
Cleveland: ”“For God’s sake send down all the Federal sol¬ 
diers into our State that you can reach by wire,” 


Branan’s Plan. 


27 


This is a compromise measure among “ourselves”—just 
what our representative on a International Monetary 
Congress would say on his return, “I did the best I could, 
and had to accept this as a compromise measure.” 

This is our country and if one of our countrymen lose, 
the other wins, and it is all in the family, and the result of 
this plan will be of benefit, if only to “our Government’s 
benefit. 

This financial question should not be any party measure, 
any more so than the passage of the general registration 
bill, which the Georgia House of Representatives had under 
consideration a few weeks ago. I called upon every member 
to vote for a Registration Bill, on account of its strong 
points, which would give an honest ballot and a fair count, 
for it should not be a party measure any more than the 
financial question. 

If Congress cannot complete this financial building them¬ 
selves,! fear it would be bad policy to leave it to architects 
(an expensive commission), who are strangers and are not 
responsible to the people; but would it not be better to turn 
the plans over to the “Commission of Banks of Issue” as 1 
have suggested, and say to “our architects” (who are em¬ 
ployed by the year) “Here are the plans, proceed at once to 
complete this financial building” as we desire to move in by 
the time to reap the “golden grain,” and gather the “fleecy 
staple,” for then we desire the news to go out to the world 
that we are ready for business, as the boys say on the road, 
“and my house has the wherewith to do it with.” 

There has been a time when it was proper to pass finan¬ 
cial war measures, but what the people are crying for at 
present, is for Congress to pass a financial peace measure, 
which will save the people from being burdened with taxes 
in the future with financial war measures, caused, possibly, 
by the action of this present Congress, for financial aid in 
time of war, buys lead and powder to play deadly havoc 
with someone, but financial aid in time of peace, places 
oil upon the axle^of commerce, and causes it to move 


28 


Branan’s Plan. 


forward with a progressive step, and the result is we give 
work to the idle and bread to the people, in place of put¬ 
ting lead in their bodies. 

The constitution of the United States speaks plainly as 
to the foundation on which our money shall be issued, when 
it recognizes gold and silver, so clearly, for in so doing, the 
framers of the constitution intended to give a granite 
foundation for future additions to the currency, just the same 
as we would give instructions to our architects, by saying* 
“I want the foundation of that building to be of the best 
grade of granite.” The same architect goes forward and 
adds to that building such additions that would carry out 
the original suggestions. Our forefathers gave Congress 
instructions as to the foundations upon which currency 
can be expanded, by placing gold and silver as the founda¬ 
tion and gave them indirect power to add to that finan¬ 
cial building such currency as would prove safe under 
their protection. 

Now I have given a few points in a plain w’ay to support¬ 
ing the idea as to the rights of the United States to supervise 
and protect the issuing of currency, now on the other 
hand I will give a few extracts from the Hon. J. C. C. 
Black’s speech, of Georgia (a statesman of a high order, for 
his actions show that: “I will first advocate the right 
and let the outcome be what it may,”) In the House of Rep¬ 
resentatives, May 29, and 31st, 1894. I do this to show that 
there is a strong argument in favor of State banks under the 
States, exclusive control, and in outlining this act I have seen 
the possibility of this being a compromise measure which 
all factions should feel kindly towards. t 

Mr. Black, of Georgia, said : 

I wish first of all to notice the position announced by the chairman of 
the Committee on Banking and Currency [Mr. Springer], and in order 
that I may not do him any injustice, I quote from the Record . After 
referring to the well-known case of the Veazie Bank, reported in 8 
Wallace, he says: 

This decision has been quoted many times. It is the law of the land as much as if its 
text were in the Constitution itself. However much you or I as individuals may think 
that the court erred when it made that decision, we have no right to think so as leg¬ 
islators, because the Constitution provides that the Supreme Court shall be the final 
arbiter as to what the meaning of the Constitution is, 


Branan’s Plan. 


29 


My friend from Virginia [Mr. Tucker] quoted Judge Miller to sus¬ 
tain the doctrine I have already announced, and the gentleman from 
Ohio [Mr. Grosvenor] made us a very valuable contribution which 1 
now beg leave to reproduce. I suggest to the chairman of the com¬ 
mittee [Mr. Springer] the authority of Thomas Jefferson on that subject. 
Referring to Mr. Grosvenor’s remark, I find in a letter to John Adams, 
dated September 11,1804, Mr. Jefferson said : 

You seemed to think that it devolved on the judges to decide on the validity of the 
sedition law. But nothing in the Constitution has given them a right to decide for the 
Executive, more than the Executive to decide for them. Both magistrates are equally 
independent in the sphere of action assigned to them. The judges, believing the 
law constitutional, had a right to pass a sentence of fine and imprisonment, because the 
power was placed in their hands by the Constitution. But the Executive, believing the 
law to be unconstitutional, were bound to remit the execution of it, because that power 
had been confided to them by the Constitution. 

Again in a letter to Judge Roane, dated Poplar Forest, September 6, 
1819, Mr. Jefferson remarked : 

In denying the right they usurp in exclusively explaining the Constitution, I go further 
then you do, if I understand rightly your quotation from the Federalist, of an opinion 
that “the judiciary is the last resort in relation to the other departments of the Govern¬ 
ment, but under which the judiciary is derived.” If this opinion be sound, then indeed 
is our Constitution a complete J'elo ae *e. For intending to establish three departments, 
co-ordinate and independent that they might check and balance one another, it has 
given, according to this opinion, to one of them alone the right to prescribe rules for the 
government of the others, and to that one, too, which is unelected by and independent 
of the nation. ‘ * * * The Constitution, on this hypothesis, is a mere thing of wax in 
the hands of the judiciary, which they may twist and shape into any form they please. 
It should be remembered as an eternal truth in politics, that whatever power in any gov¬ 
ernment is independent, is absolute also; in theory only at first, while the spirit of the 
people is up, but in practice as fast as that relaxes. Independence can be trusted no¬ 
where but with the people in mass. They are inherently independent of all but moral law. 
My construction of the Constitution is very different from that you quote. It is that 
each department is truly independent of the others, and has an equal right to decide for 
itself what is the meaning of the Constitution in the cases submitted to its action, and 
especially where it is to act ultimately and without appeal. 

Now, sir, I shall read from the Congressional Globe the proceedings of 
the second session of the Thirty-eight Congress, commencing on page 
1194, and from that on, I believe, to page 1244. There were adjourn¬ 
ments and interferences by other business, so that the discussion of 
this amendment was not a continuous one. I read from Mr. Hendricks, 
of Indiana. I would like our Indiana brethren to hear what Mr. Hen¬ 
dricks said upon the constitutionality of this law : 

Mr. Hendricks : I do not consent to that. If the Committee on Finance abandon rev¬ 
enue and commence a banking system, I hope we shall discuss it thoroughly. I shall 
never consent to it as long as I can resist it in any proper way. I do not consider this 
section as belonging to revenue at all. I consider the whole proposition an outrage upon 
the States, and I feel It my duty to resist it as long as I am able to do so. If it were a 
revenue question, I would go to any extent, compromise anything; but it has nothing to 
do with revenue. It is to carry out a peculiar policy that I do not believe the country 
wants. 

Mr. Walker: Will it disturb the gentleman for me to put in a point 
right here? 

Mr. Black, of Georgia: I wish to be perfectly courteous, more than 
courteous, liberal. I will hear the gentleman. 

Mr. Walker : Mr. Chairman, the point of the alleged unconstitution¬ 
ality‘ol this law is its prohibiting the States from acting on this ques¬ 
tion purely as an issuing of money, a revenue question. Now I desire 
to call the attention of the gentleman to this point—and I hope he will 
notice it—that the issuing of this money is a part of the commerce, a 
part of trade, a part of the regulating of interstate trade; a point which 
is not taken into account in any of these discussions to which the gen¬ 
tleman refers. 


30 


Branan’s Plan. 


Itsee ms to me that Tvlr.Walker’s intimation is correct 
for I find that money is a very important commodity as to 
carrying on commerce, it is as much an important factor in 
pushing forward commerce, as steam is in receiving the full 
benefits from a locomotive, which stands at the station 
ready to go forward, and the only thing necessary is to turn 
on the steam and she moves forward with ease: so give this 
financial relief and commerce will move forward as she did 
of old. 

Mr. Black, of Georgia: I suggest,Mr. Chairman, it is rather a re¬ 
markable thing that it never occurred to these great men who were ex¬ 
pounding the Constitution to take the view that this was part of com¬ 
merce. It is no part of commerce. The issuing of money is not com¬ 
merce in the sense of the Constitution, and the power to control it can 
not be derived from the provision of the Constitution which relates to 
commerce. Besides, that provision of the Constitution which relates to 
commerce relates to commerce with foreign nations and among the sev¬ 
eral States and with the Indian tribes. You propose to step over State 
lines and to come within the boundaries of the sovereign—yes, sir, I am 
not ashamed to say the sovereign State of Georgia, or any other sover¬ 
eign State in the Union, and say to the people of that State, under the 
pretext of relating interstate commerce, that they shall not have a 
right to carry on their own domestic and internal affairs. 

Mr. Black, of Georgia : I quote now further from this discussion the 
remarks of Mr. McDougall, of California, who said : 

The policy of this amendment was indicated in the speech of the chairman of the Com¬ 
mittee on Finance upon the introduction of this hill. It may he an opinion of this Gov¬ 
ernment—so far as it is a government considering it as a Senate, House of Representa¬ 
tives and Executive—that it is wise policy to wipe out of existence all the authorities and 
powers of the States. 

Oh, Mr. Chairman, I know that the idea that Mr. McDougall was ad¬ 
vocating is not a very popular one to suggest in some quarters. I know 
when we do suggest it we are met with the charge that we are going 
back thirty or forty years to the period that antedated the war and to 
the theories of our government entertained at that time; but let me 
tell you, sir, that the truest friends of this Union, purchased by the 
blood and the sacrifices of our fathers, are the men who are most zealous 
to maintain the right of the States that constitute the Union, the 
Union—yes, an indivisible Union, but an indivisible Union of inde¬ 
structible States. 

Here— 

Says Mr. McDougall— 

is an edict of this Government to wipe out of existence all State power to organize insti¬ 
tutions to deal in money in their several jurisdictions. 

Mr. Fresident, monetary, administrative, judicial and military powers must have their 
several relations. The fathers who laid down the foundations of this Republic were men 
who had studied the lessons of antiquity. They had learned from Grecian and Roman 
states many lessons; hut there was a little work, not voluminous, which was the favorite 
of Franklin, and Madison, and Jefferson, and of the men who laid the foundations of our 
Republic, the author of which was called Montesquieu. He affirmed as an absolute truth 
as the result of great study (and he was called then the best philosopher on the science of 
government) that no republican institution could be maintained over a vast extent of 
territory only by association. It is a truth in political science, that in the maintaining of 
institutions we have to make them more or less immediately. How we will make them 
depends, of course, upon the particular condition of society arid their affinities. It would 
not be hard to aggregate New England. No government could be maintained as a repub- 


Branan’s Plan. 


31 


ican system of government over vast territories unless they are subdivided into separate 
portions, where their special administration is exercised "in small districts, and where 
their general power is aggregated in the whole, as it was in Greece, as it was in the 
Achaean League, as it was in the States of the Middle Ages, and in the free cities of 
Europe. 

This is the truth which history has established, which Montesquieu has recorded, and 
which the fathers of the Republic introduced into our Constitution as a principle. We 
have a country extending from the Atlantic to the Pacific, from the Gulf of Mexico to 
the Northern Lakes, and then again up far away to British Columbia. Does any reasona¬ 
ble person suppose that any one system of banking, for instance, could obtain throughout 
all that region; that Oregon could accept a system inaugurated by the politicians or the 
managers in the city of Washington or in the city of New York; or that California could 
do it, or that Dakota could do it, or Idaho, or Arizona? No, sir. Their interests are ad¬ 
verse, and they have their various modes of transacting business, and for the purpose of 
transacting their business they require their own mode of doing it. 

I differ with Mr. Dougall in the latter paragraph, foi I 
think good money is and should be the same in every State 
of the Union, but I see very plainly how we should not enact 
a general act, when the climate or latitude is in question, for 
instance, a warm climate desires open street cars, and a cold 
climate demands closed cars. 

Mr. Black said: Mr. Chairman, I deny it. This legislation is not 
only unconstitutional, but it is undemocratic. 

Mr. McDougall says further : 

It is not many years since a majority of the people of the Republic entertained, or at 
least endorsed, the opinion that the United States Bank was unconstitutional, that we 
had not a right to establish an institution that should raise itself in the various States as 
a great money power and be a corporate body under the influence of this Government. 
Now, a further proposition is made—it goes much further—that no State may organize a 
banking institution; for although in form of words this is not said, it is substantially 
expressed by this Machiavellian style of language, not saying the thing but providing 
for the thing being done. In the State in which I live we have a gold and silver currency, 
and we have banks, and so we have on all the coast of the Pacific. 

And yet under our financial system and under a financial system 
which is Sought to be perpetuated by the enforcement of this law taxing 
State banks out of existence, the States could not organize a bank to 
redeem their currency in gold and silver—the money of the Constitu¬ 
tion, the only money of the Constitution, the only money in its true 
sense that was known to this Government for a long period of its exist- 

0I1C6. 

I am not discussing just now the question whet her the States ought 
to do this or not. I am not addressing myself to that question. I 
simply say the proposition that Congress can prohibit a State from 
establishing a banking institution to redeem its currency in gold and 
silver is a proposition utterly indefensible from any constitutional or 
democratic standpoint. 

Again Mr. Hendricks said : 

It is certain that the committee, as the representative of the body for the examination 
of this measure, said to the Senate that the section ought to be stricken out. I think so too. 
I suppose no Senator questions the right and the power of a State to establish banking 
institutions. 

I commend that language to the chairman of the Committee on Bank- 
in 0, and Currency, who did question the right of the State to charter 
banking institutions—who did say that the States have no more right to 
issue currency than to coin money. It never occurred to any Senator 
even on that' side of the question, in the discussion of this origin 
proposition before the Senate, to deny the authority of the States 
this respect, because they knew, I presume, what the gentleman mu 


32 


Branan*s Plan. 


have known, though he evidently forgot it at the time, that the question 
had been adjudicated by the Supreme Court of the United States and it 
had been fortified by a contemporaneous exposition of the Constitu¬ 
tion through seventy-five years of the history of the Government. 

I suppose no Senator questions the right and power of a State to establish banking 
institutions. That is too well established to admit of discussion any longer. It is one of 
the rights, one of the prerogatives of the States to establish banking institutions and to 
authorize them to issue paper money. The States have exercised this power. 

Now he proceeds to speak of the State of Indiana, to which the chair¬ 
man of the Committee on Banking and Currency referred in his speech 
the other day: 

In the State of Indiana it has been exercised very beneficially to the trade and pros¬ 
perity of the people. If a State has the power to establish banking institutions, has Co-u 
gress the power to forbid it? If not the power to forbid it directly, has Congress the 
power to defeat the purpose of the State in the exercise of one of its powers by indirect 
legislation? 

Let me say to the Democrats on this side of the House who seem to 
dissent from our position on this question, if you are going to prohibit 
State banks from the exercise of this power, then for the sake of con¬ 
sistency, for the sake of decency, pass an out-and-out statute, penal on 
its face, and do not seek to cover up your action under the pretended 
exercise of the taxing power of the Government. It is not a tax; it 
never was intended for revenue; it has never produced revenue. It is 
a falsehood to call it a tax or to treat it as a tax. 

Now if you say that Congress has the right to do this, then swallow 
your words on the subject of tariff taxation, or prohibit by a penal 
statute the exercise of this power on the part of the States, and say that 
any State corporation that issues banking currency shall be guilty of a 
misdemeanor. But do not perpetuate upon the statute books of the coun¬ 
try this barefaced, shameless lie, that you are levying a tax, when you 
know you are not levying a tax, and when know that, except perhaps 
fora short period and an insignificant sum, not a dollar nor a cent of 
revenue ever was derived from it or ever will be. 

Mr. Patterson : Will the gentleman allow a suggestion in this con¬ 
nection? Supposed that the proposition designed in fact to tax the 
State banks out of existence, had recited on its face that such was its 
purpose, and that it was not for the purpose of revenue, what then 
would have been the decision of the Supreme Court? 

Mr. Bayner : That question was decided. Chief Justice Chase said 
that such an act would have been perfectly good. 

Mr. Black, of Georgia: Mr. Chairman, I do not care to have a side 
discussion of this kind interjected into what I am undertaking to say. 

Mr. Oates (to Mr. Bayner). It was an absurdity when he said it. 

Mr. Bayner : He said it all the same. 

Mr. Cox : It is an absurdity all along the line. 

Mr. Black, of Georgia: But whatever is done in this discussion, or 
whatever the result of the action of the House may be—and I will not 
assume to advise, much less would I assume to dictate to my associates 
on this side of the house, whose sincerity and ability I concede—I want 
to say to them, if they expect to hold to the old and sound Democratic 
doctrine of a tariff for revenue, this statute must go, whatever else you 
may enact in its place. 

Mr. Hendricks further says. 

If not to forbid it directly, has Congress the power to defeat the purpose of the State in 
the exercise of one of its powers by indirect legislation? I claim, Mr. President, that to 
some extent this question was considered by the Supreme Court in a case very familiar 
to all Senators, that of McCulloch vs. The State of Maryland. 


Brana^Vs Blan 


He goes on and examines that decision and proceeds: 

It is conceded that the States have the right and the power to establish State banks 
The Supreme Court in the decision of this case, do not base their decision upon any pecu¬ 
liar power possessed by the General Government, but they hold the broad doctrine, the 
doctrine necessary to be held in maintaining the proper relations among the States them¬ 
selves, and between the States and the Federal Government, that one government cannot 
pull down that which another government has a right to establish. Does the Senator 
from Ohio claim that a State has not the right to establish a State bank? That is con¬ 
ceded; so well is it established by the judicial decisions of the country. Then if the 
State of Indiana, as an illustration, has the power to establish a State bank, I ask Senators 
if Congress has the power to forbid it? If Congress has not the power to forbid it di¬ 
rectly, has Congress the power to defeat the State, by indirect legislation, in an effort to 
exercise the power it is conceded she possesses? 

I quote now from Senator Powell, of Kentucky. 

The result of this course of legislation is utterly to destroy all the rights of the State. 
It is asserting a power which, if carried out to its logical result would enable the Na¬ 
tional Congress to destroy every institution of the States, and cause the power to be con¬ 
solidated and concentrated here. Instead of doing this, in my judgment, if you were to 
act like wise and sensible men you would pass a law repealing your national banking 
system entirely, for it has so far proved an utter failure, and the longer it exists the more 
manifest its rottenness will be. 


Further he says: 

Every man knows the power of money. It is dangerous to the liberties of the people, 
and I fear will ultimately be used as a lever by which to overthrow and destroy those lib¬ 
erties. For one, I look on this system of consolidation with the greatest fear and appre¬ 
hension. 

And if some power could call him back to-day from his grave, looking 
at our existing financial system, he would feel more deeply the appre¬ 
hension and fear he then expressed. 

Here is what Mr. Henderson, a Senator from Missouri, said : 

Now, Mr. President, I say in the first place that this thing is unconstitutional. In the 
second place it does not aid the government. 

Mr. Johnson says: 

I think it involves a constitutional question, free in my judgment of all real difficulties. 
From the beginning of the Government to the present time the authority of the States 
to establish banks and to clothe these banks with the authority to issue notes, has never 
been seriously questioned. 

Chief Justice Chase, in his opinion, said : 

A railroad company in the exercise of its corporate franchise, issues freight receipts, 
bills of lading and passenger tickets, and it cannot be doubted that the organization of 
railroads is quite as important to the State as the organization of banks. But it will 
hardly be questioned that these contracts of the company are objects of taxation within 
the powers of Congress, and not exempted by any relation to the State which granted the 
charter of the railroad. 

I respectfully submit that, adopting the analogy of this decision, no 
man on this floor would for a moment maintain the position that the Con¬ 
gress of the United States had a right, under the guise of the power of 
taxation, to strike down and prohibit freight receipts, bills of lading, 
and passenger tickets. And yet, if the position is correct that because 
Congress can tax these things, therefore it can lay a prohibitory tax 
upon the issue of State banks, it logically follows that Congress could 
also impose a prohibitory tax upon the issue of freight receipts, bills of 

lading and passenger tickets. . . , ^ . _ 

Mr. Black, in referring to certain decisions, remarked : these judges 


say— 

Thebourt observed that the Banks of North America and Massachusetts and scm 
others were in operation at the time of the adoption of the Constitution, and that it coul 
not be supposed\hie notes of these banks were intended to be inhibited by that instr i men 
or that they were considered as bills of credit within its meaning. 

The constitutional power of the States being thus established by inconvertible author- 
tv to create State banking institutions, the next question is whether or not the tax 
n question can be upheld consistently with the enjoyment of this power. 


Mr. Black said: 

Now Mr Chairman, I announced in the beginning of my remarks 
hat I would undertake to maintain two propositions. One was that 


u 


BrANAN*S PLAtf. 


this law levying this tax was an unconstitutional law, and the other 
was that it was undemocratic; that it was contrary to the platform of 
the Democratic party. I may be permitted in this connection to quote 
from an authority upon the binding force of the platform of the Demo¬ 
cratic party at least upon this side of the House. I quote the opinion of 
a person of no less distinction than the Chairman of the Committee on 
Banking and Currency. I refer to that gentleman with the greatest 
possible personal respect. I make illusion to him in this discussion 
only because of the relation he bears to the pending matter, because of 
the fact that by reason of his long and distinguished public service he 
commands the attention of the country, and because he is the chairman 
of the Committee on Banking and Currency and has at great length and 
with so much earnestness addressed this committee in favor of this law. 
On the 29th day of August, 1893, on the repeal of the purchasing clause 
of the Sherman law, Mr. Springer said : 

Mr. Speaker, I stand unequivocally on the seventh section of the Democratic platform 
adopted at Chicago in June, 1892. 

And he then quoted from the section of that platform denouncing the 
Sherman act of 1890. On the same day, and in the same speech he 
quoted the third section of the platform denouncing protection, and 
said: 

Our pledges to carry out these two propositions are equally sacred, and must be kept 
in both cases to the very letter. 

Again, speaking generally, he said : 

I believe, Mr. Speaker, that the representatives of the people on this floor, the Demo¬ 
cratic party as represented in the Senate, and the President of the United States will 
unite in making- good the promises that we made to the people, and upon which we se¬ 
cured the election of a large majority of this House and the majority in the Senate, and 
an unprecedented majority of the Electoral College in behalf of the candidates of the 
Democratic party. 

I think, Mr. Chairman, that was a correct statement of our position 
and of our duty, as well as of our obligation to the people to carry out 
those pledges. 1 now ask of this side of the House, and all I ask is that 
we carry out all these pledges to the letter. All I now ask is that when 
we stand on the Democratic platform, we shall stand on it flat-footed 
and squarely, not on one plank or on two planks, but on every plank. 
If we are bound by our pledges to the people to carry out the third and 
seventh sections of the Democratic platform, which I have quoted, how 
is it that we are any the less bound to carry out the eighth section? 
If we were bound in August, 1893, to carry out these pledges, are we 
any ess bound now? 

I beg to call the attention of this side of the House to the fact that 
this statute, in my opinion, is opposed to no less than three planks of 
the Democratic platform. It is opposed, first, to the one that has been 
already quoted, and the one that naturally and readily occurs to us, the 
eighth section : 

We recommend that the prohibitory 10 per cent, tax on State-bank issues be repealed. 

But that is hot all. There is a great deal more in the platform. 
There are many principles announced in it, and I respectfully insist 
that this statute which we are now seeking to repeal is in conflict with 
those principles. Let me call your attention to section 3. 

We denounce Republican protection as a fraud and robbery on the great majority of 
the American people for the benefit of the few. 

Mr. Black continued: 

Now, are we to have class legislation in our finances, and denounce 
class legislation in our tariff system? Here is a provision of this plat¬ 
form : 


Branan’s Pldn. 


35 


Sec. 5. We recognize in the trusts and combinations which are designed to enable capi¬ 
tal to secure more than its just share of the joint products of capital and labor, the nat¬ 
ural consequence of the prohibitive taxes which prevent the free competition which is 
the life of honest trade. 


Xow, let us analyze that. That, I take it, is a declaration of prin¬ 
ciple, upon which we pledged ourselves to stand, and to enforce by 
proper legislation. What does it say? It says that— 

Free competition is the life of honest trade. 


Is not that true in finance, as well as in every other system? What 
more does it say? It says that— 

Prohibitive taxes prevent free competition. 


Are we to denounce prohibitive taxes that prevent free competition 
in the barter and exchange of goods, and uphold a system that strikes 
a deadly blow at free competition, which is the life of honest trade, in 
our financial system? 

What more does it say? It says that as a natural consequence of pro¬ 
hibitive taxes, which prevent free competition, which is the life of 
honest trade, we have trusts and combinations. Where have we more 
trusts and combinations than in our system of finance? And I under¬ 
stand the true, genuine Democratic rallying cry to be : Down with all 
trusts, no matter from what quarter, no matter by whom maintained. 
Down with all trusts; down with money trusts as well as manufactur¬ 
ing trusts. Unshackle the people and give them the God-given right 
to govern themselves. [Applause on the Democratic side.] 

Now, Mr. Chairman, I oppose this law and I insist upon its repeal 
because in my opinion, it is unconstitutional. It is unconstitutional 
because it denies to the States the right which they had when the Gov¬ 
ernment was founded, and which they exercised for seventy-five years 
of its existence. I denounce it as unconstitutional because it is a pros¬ 
titution of one of the great powers of this government. I denounce 
it as undemocratic, because it is a system of protection with¬ 
out the flimsy excuse or pretext of protecting American labor or sus¬ 
taining infant industries. It is in finance what the McKinley law is in 
the tariff system. For that reason it is undemocratic. 

It is undemocratic because it is monopolistic. Is not the Democratic 
party always the inveterate enemy of monopoly? Here, by the perpetu¬ 
ation of this statute, you perpetuate a monopoly. Therefore, I say that 
it is undemocratic. It is class legislation. It fosters trusts and combi¬ 
nations in money, and are we to say that a system that prohibits the 
importation of a yard of cloth or a pound of any other product of a for¬ 
eign government is undemocratic, un-American, unconstitutional, a 
fraud and a robbery, and yet uphold a system that says that the free 
people of the States of this Union shall not have a right to issue their 
own currency for their own domestic and internal affairs? I say no, 
and again I respectfully insist that this statute not only is in conflict 
with that single provision which recommends the repeal of this tax,but 
it is in conflict with those two other planks in the Democratic platform 
which announce great cardinal, fundamental principles. 

The chairman of the committee [Mr. Springer] submitted a constitu¬ 


tional argument upon this subject. He says : 

The Constitution evidentlv intended to give to Congress exclusive jurisdiction in refer¬ 
ence to money. Section 8 of Article I. provides that— , _ _ . .. _ - 

“The Congress shall have power * * * to coin money, to regulate the value thereof, 
and of foreign coin, and fix the standard of weights and measures.” 

And in section 10 of the same article, it is provided that— . 

“No State shall * * * coin money, emit bills of credit, make anything but gold and 

silver coin a tender in payment of debts,” 


36 


Branan’s Plan. 


Then he submits this argument: 

I am aware that there are many conflicting opinions of individuals and 
courts as to the meaning and scope of these provisions of the Constitution. Rut all aumic 
that the exclusive power to coin money and to regulate the value thereof is vested in tne 
Congress of the United States. There is no real money in this country except the coins 
of the United States. Paper currency is merely a promise to pay coin—to pay money. 

It is not the coin or the money itself. 

Here is a distinct acknowledgment that paper currency is not money 
and yet, strange to say, by some sort of a .mental tergiversation, the 
gentleman reaches the conclusion that under the power in Congress to 
coin money, it has supreme and exclusive jurisdiction over the issuing 
of paper currency. 

It is true— 

He says— 

for all practical purposes it is money, * * * the coin is the money at last, and Coir 
gress was given exclusive jurisdiction over coins—the power to coin money and to regu" 
late the value thereof. 

And then he concludes by saying this : 

To avoid such confusion in finance, we must adhere to the doctrine that Congress lias 
exclusive jurisdiction over money and over everything that passes for money, everything 
that performs the functions of money. 

Now, here is the statement that Congress has exclusive jurisdiction 
over money and over everything that performs the functions of money. 

Why, I am sure the-gentleman must for the time being have forgotten 
the fact that there are a great many things that perform the functions 
of money—bills of exchange, checks, promissory notes, and even mutual 
accounts can and do perform the functions of money. Where the 
accounts are mutual, not only can the parties set off and thus make pay¬ 
ments to each other, but if they go into the courts, the courts will com¬ 
pel them to set off. 

To appreciate Mr. Black’s argument is to read it in full* 
and while I may not agree with him as a whole, I would 
feel safe for his ideas to be carried out to the letter. 

The speech delivered by the Hon. Thos. G. Lawson, of 
Georgia, May 26, 1894, on the repeal of the ten per centum 
tax on State banks is a strong argument and the introduc¬ 
tory remarks give food for much thought. 

Mr. Lawson said: 

M*. Chairman, I did not expect to address the committee this after¬ 
noon; I know that members of the Committee on Banking and Cur¬ 
rency would be preferred in the order of debate, but as no member 
of that committee is now prepared to go on, I will claim the floor in my 
own right. 

I propose to submit some observations in favor of the repeal of the 
prohibitory tax on State bank notes. True, there are no existing notes 
that fall due under the prohibition, but we propose to repeal it be¬ 
cause it is wrong in principle, unwise in policy, and injurious in its; 
operation. 

The State banks referred to are private companies, incorporated by 
the several States for the purpose of transforming their credit into 
currency for general use among the people. We propose that their 
authority to issue notes shall be derived from the States in the exercise 


Branan’s Plan. 


87 


of their constitutional prerogatives and sovereign will, limited only 
by such conditions and safeguards as they may severally see fit to im¬ 
pose. I am willing to instruct the State with plenary power over the 
subject, persuaded that they are competent to enact legal provisions 
sufficiently wise and just and careful to protect their own honor and 
dignity, and also furnish to their citizens a sound, stable and adequate 
paper currency. 

The power to incorporate them resides alone in the several States, 
and assuming that they would be useful, that they would perform val¬ 
uable functions, and greatly enhance our commercial prosperity, it 
follows that the power of the States to create them ought not to be 
abridged. No one will deny that a sound banking system, having 
authority to issue a paper currency, and to thereby utilize that large 
mass of otherwise dead capital of the people, namely, their credit, is 
promotive of the most essential facilities and the largest prosperity in 
the conduct of business. 

McLeod say that— 

Banking is the most potent engine for the increase of the moving power of any given 
quantity of actual capital that it is possible to devise, consistently with keeping up the 
value of the currency at its level with bullion. And just as the banking spreads more 
extensively, does it multiply the producing power of the community .—McLeod on 
Banking, Volume 2, page 408. 

This plan is more liberal to the banks, as to issuing cur¬ 
rency, than the present national banking law. I am satis¬ 
fied that the tendency will be for banks carrying on business 
under charters granted by the United States, to give 
them up and secure State charters in their stead, and 
there will be very few, if any, new national bank 
charters granted hereafter, and the natural outcome 
will be that this new system will grow in favor with the 
people. 

The people are not ready to give to the State banks, or 
any corporation, such unlimited privileges, as to issuing 
money simply upon their credit, as some of these plans al¬ 
low, which have been suggested to Congress, by which 
they could declare an increased dividend, any more so than 
they are to allow the government to stamp fifty cents worth 
of silver into a dollar, for the benefit of certain mine owners. 
To bring out this idea more clearly, 1 will quote Mr. G. R. 
DeSaussure (Vice-President Exchange Bank, Atlanta, Ga.), 
who said in a ecent paper: “Again in 1857, when the Hon. 
ex-United States Senator Joseph E. Brown was governor 
of the State, this currency or bank question was agitating 
the public mind. The banks, through their influence, had 


38 


Brdnan’s Plan. 


become a power in the State, and had willfully disregarded 
the law” in regard to specie payments; the governor, though 
then perhaps young in experience, showed a remarkable 
strength of purpose in contending with an opposition sup¬ 
ported by two-thirds of the Legislature and a strong public 
sentiment. A bill was introduced (in the Legislature), and 
after infinite and elaborate discussion passed, suspending for¬ 
feiture proceedings against the suspended banks for one 
year. Governor Brown sent in his veto of the bill, and with 
it a message which marked him before the people as a leader. 
The message closes with these words : ‘I feel it to be a duty 
I owe to the people of Georgia to do all in my power to 
avert the evils which would follow the passage of an act 
legalizing the suspension of the banks. All solvent banks 
will doubtless soon resume specie payment. I shall do all 
which the law makes it my duty to do to have the charters 
of such as do not resume forfeited, and their assets placed 
in the hands of receivers, and converted into money and paid 
to their creditors as soon as possible. No serious inconveni¬ 
ence will follow, as it is believed most of them are solvent 
and will resume. Those which are not solvent will be 
wound up, and the sooner the better for the people. Gov¬ 
ernor Brown must have appreciated fully the danger to the 
country under the system of currency then in existence. In 
fact, Avery reports him as saying, ‘the citizens could only 
loan money, dollar for dollar, at seven pei cent.; the bank 
could issue three dollars for one and use all four, realizing 
from thirty to fifty per cent.’ and again, the privilege was 
unreasonable, and he branded such banking as a ‘legalized 
system of speculation, oppression and wrong.’ ” 

The same account of the veto goes on to say, “Why did 
they not resume? Because it was to their interest not to do 
so. They made money out of the suspension. Warming 
up, the plain-spoken governor said, that the banks that had 
suspended, and so continued, were guilty of a high commer¬ 
cial, moral and legal crime, depreciating the value of prop¬ 
erty, causing pecuniary depression, injuring the public credit 


Branan’t Plan. 


39 


and violating the law of the State. Private citizens had to 
meet their obligations. Banks should do so. The citizens 
could not suspend. The banks should not.” 

These State-rights statesmen should realize that the 
State Treasurer in this act, is a sub-treasurer in one sense— 
and the outcome would be to benefit their people, but, if 
they should fight the passage of this bill upon that idea, 
and insist upon being a barrier between the government and 
a plan to benefit the people, then this act could be changed, 
so as to have a sub-treasurer in each State, which would 
act instead of the State Treasurer. Of course, this would 
place the banks of issue more directly under the supervision 
of the United States authorities; but the original idea, to 
allow each State to stand on its own dignity, and to utilize 
its own local or State securities would still be in vogue. 

We, the commercial travelers, backed by the business men 
of Atlanta, originated and have now in operation what is 
known as the “ Trust Company of Georgia,” with a capi¬ 
tal of a half million (which can be easily increased, if nec¬ 
essary) ; and are better prepared to be designated or to 
act as a sub-treasury in many respects than the Treasurer 
of some States—for our office is equipped with the latest 
improvements in vaults, and has enough separate apart¬ 
ments to accommodate every bank in Georgia. Such institu¬ 
tions, doing a strictly “Trust business,” are located in 
almost every State. 

To appreciate any bill for the change of the currency sys¬ 
tem, is to read it time and again and make it a study. I ask 
that the people look well into this plan and call my attention 
—or some one who is interested—to any plausible defects 
which may be detected and make it more perfect by giving 
it your consideration. Look into this plan with an eye to 
improve it and not go on record as a fault-finder and cannot 
see good in anything except yourself and your ideas. 

I would not be recognized as an “Atlanta Drummer” if 
I did not call the reader’s attention to the good judgment of 
Congress, in appropriating funds to make an exhibit of the 


40 


Branan’s Plan. 


resources of the United States, at a point where millions of 
people all over the world will see what she is, and the possi¬ 
bility of her grand future. Every citizen of this union who 
visits the Cotton States and International Exposition (to 
be held in Atlanta, Ga., U. S. A.., September, October, Novem¬ 
ber and December, 1895) will say to the people of the world 
who are present, “that we are the people,” and particularly 
so, if this currency plan or a similar one is adopted, for such 
action will be the steam as I have said, that will move the 
engine of commerce. 



























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